It has many names: Workers’ Comp, Workers’ Compensation, etc. Whatever term is used, Workers’ Compensation insurance is a requirement for almost all types of business. In particular, Workers’ Compensation in Michigan is mandatory in most scenarios. So, if you’re about to establish a business or own an existing one, you might want to brush up on what it is and get a policy set up today.
PolicySweet® has worked with several business owners in Michigan to get them Workers’ Compensation insurance. If you’re looking for a policy, we can help!
What Is Workers’ Compensation?
You can follow all the precautionary measures and set up safeguards, but accidents can still happen in the workplace. When an employee gets injured within your premises or while performing their job duties, you could be liable for damages like medical costs and lost wages.
Workers’ Compensation insurance is how you can help protect yourself from financial loss in the event of workplace injuries. It can act as a safety net that helps to cover the costs of workplace accident claims and could reduce financial damage to your business.
Characteristics of Workers’ Compensation in Michigan
Workers’ Compensation laws and policies differ from state to state. In Michigan, there are a few characteristics that may not apply in other locations:
- Coverage: Under the Michigan Workers’ Disability Compensation Act, covered workers who get sick or injured should be compensated by their employers. Most private and public employers are required to obtain coverage.
- Exemptions: Named partners and corporate officers can be exempt from coverage. Sole proprietors who are self-employed might also exempt from the law. However, they might be required to complete and submit an exclusion form with the state.
- Where to get coverage: Businesses have two options. First, they can get a plan from commercial carriers. PolicySweet can help find you coverage. The alternative is the state’s administered funds for Workers’ Compensation.
Expenses Covered by Workers’ Compensation
As an employer, it is typically your responsibility to help ensure a safe working environment for your workers. If they suffer injuries due to working conditions, you could also be responsible for a wide range of things. The following can be covered by an insurance plan:
Missed Wages
If a worker is unable to report to work because of their job-related injuries, they can file a claim that includes missed wages. Workers’ Compensation insurance can help cover this.
Medical Costs
Getting injured likely means needing medical tests and treatments. This can quickly add up. An injured worker can file a claim to be compensated for these expenses if it is associated with a work-related injury.
Ongoing Support
Some work-related injuries can take extensive time to heal, and it could be a while before the injured party recovers. They might require treatments like physical therapy and medication to heal. Workers’ compensation can help pay for the ongoing support.
Aside from the above, Workers’ Compensation insurance could help you:
- Pay for legal fees: Some plans can cover the legal fees you might incur for work-related injury claims.
- Stay in compliance with Michigan laws: Having Workers’ Compensation insurance helps you avoid fines or penalties for not having the required insurance coverage.
What Isn’t Covered by Workers’ Compensation Insurance?
There are a few situations that are not covered by Workers’ Compensation. This could include the following:
- The injury was intentional.
- The employee’s conduct that caused the injury violates company rules.
- The employee was under the influence of alcohol or controlled substances during the injury.
- The injury didn’t occur on the premises or while they were performing their role.
- The employee purposefully didn’t follow instructions for handling equipment, materials, and other hazardous company property.
- The employee suffered injuries from violence they instigated.
- The injury happened after their contract ended.
Does Your Business Need Workers’ Compensation Insurance?
In Michigan, most businesses with one or more employees should have Workers’ Compensation insurance. This applies to both public and private entities. If you own a private business and have one employee, you’ll most likely need a Workers’ Compensation insurance policy if they work more than 35 hours a week for 13 weeks or longer.
If your company falls under the criteria above, then you should have a policy set in place. This might also be applicable if you’re planning to expand the number of your employees or their hours.
Request a Quote for an Insurance Plan
Ready to set up Michigan Workers’ Compensation insurance for your business? Request a quote from PolicySweet. We have helped several companies in the following industries and more!
We follow a systematic method to help you choose the plan that best suits your requirements.
- Step 1: Answer questions about your business so we can learn more about your needs.
- Step 2: You’ll receive a no-obligation quote to help you make a more informed decision.
- Step 3: Once you accept the plan and quote, your business can be covered!
To get started, contact us today.
Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.